Phenomenology in Peter Zumthor’s architecture

Phenomenology is not a new invention, although it became synonymous with modernistic art in the early 1900’s. In fact the idea of phenomenology and the meaning of life and its numerous connections became not only an existential question, but also a study of reactivity between human beings in the hope that we might understand why things happen and why we behave in the way we do. In the social sciences, sociologists such as Max Weber wanted to understand this relationship between humans and in art this relationship culminated in the relationship between the artists and the subject and the inherent ties that are visible between the two. Peter Zumthor has become a paragon of his art and his architecture is something of a phenomenological artefact and in this case we examine his architectural pieces at Vals in Switzerland and Cologne in Germany. We look specifically at his spa complex (Therme Vals Spa) and his art museum (Kolumba). We also look at the meaning and the theory of phenomenology as a discipline in the attempt to understand the connection between Zumthor’s personal standpoint and the ideology as a whole. We look first at phenomenology as a discipline and its forefathers while also looking at the very first revelations of phenomenology in the arts. What is phenomenology? How did it come into being and why is it such a powerful tool for the arts? Phenomenology is described as the â€Å"study of structures of consciousness as experienced from the first-person point of view. †(Smith, 2008). What is central to the idea is the intention of the subject, for instance, what does the individual intend to do with the experience? The direction of an experience is geared towards the object with pertinence to the meaning of the relationship (Smith, 2008). It was used in the social sciences by masters such as Heidegger, Husserl and Sartre and encompasses four major aspects of the philosophy of social science: epistemology, ontology, ethics and logic (Smith, 2008). Naturally, these aspects of humanity cannot be explained by scientific inquiry alone, as the human brain consists of unseen reactions as well as the physiological and observable. This posed a problem for social sciences in the sense that something could not be proven unless it could be observed. What we are able to observe, clearly, is interaction, action and reaction. What we are not able to observe is the ‘why’. Smith (2008) explains that where conscious experience is concerned the major affect is that we are able to live through them and perform them. We are able to relate a past experience only from our own standpoint, based on how we felt at the time and therefore we interpret it as it affects us personally (Smith, 2008). Hermeneutic phenomenology is a branch of the discipline that stems from the interpretive which means that we are only ever able to interpret experiences and relationships thereupon and never able to prove beyond reasonable doubt that it is true or not (Marcelle, 2005). At present, the nature of phenomenology is changing with the advent of new communication methods such as the internet (Marcelle, 2005). Indeed, artistically speaking, architecture also remains a means of communicating via its ability to relate a feeling or atmosphere that is pertinent to the emotion it wishes to convey. For example, an art museum wants to convey a different experience to that of a spa. After we have interpreted experiences, we then have to analyze them and remove notable aspects for further observation. Thereafter, phenomenology tries to expand upon different ways of thinking and understand what type of thinking allows that particular experience to be interpreted in that way. Empirical experiments attempt to determine the commonality of that experience and whether it can be proved (Smith, 2008). Some forms of phenomenology try to explain these experiences with the added benefit of neurological knowledge which is of course, empirically and scientifically proven (Smith, 2008). ` Now we know what phenomenology is but what we need to do it examine where is it began in terms of representational art and architecture. Upon viewing something it immediately invokes some sort of emotional connection: whether you like it very much or hate it, there is a reason for this connection. When we view a flower in the open air, some of us may feel euphoric and happy amongst the beauty while others may not be greatly affected by it. The same is true when viewing a rubbish heap, but with the opposite emotion. How we view this experience depends very much on the frame of mind we are in at the time and the overall mental state or personality. This was used in early Surrealist art where those such as Salvador Dali attempted to relate the internal subconscious of the self to the viewer. Dali himself used architectural type hypercube structures to convey a certain transcendence of Christ in his famous Corpus Hypercubus (1954) (Fudjack & Dinkelaker, 1999). The purpose of using this 3 dimensional construction was to invoke the sense not only of transcendence but also omnipotence with the past, present and the future all being present in one picture (Barrette, 2007). Prior to Zumthor’s work and wedged in between Dali’s was Antonin Gaudi whose post-modernist art nouveau architecture can be seen as both garish and outrageous. Gaudi’s work was not only intended for a purpose, but was also employed to have specific affect on the viewer. Sagrada Familia was not completed before Gaudi’s death in 1926 (Schumacher, 1991). Gaudi used angularity, columns and vaults in true architectural classicism and combined it with modern eclecticism to produce a gorgeously outrageous modern gothic temple. In other works, he used mosaics and facades to produce candy-like buildings that both pleased the eye and served a purpose. So phenomenology is not a new idea in the arts and was used with great effect also by artists such as Rene Magritte and in writing by Roland Barthes. Marcel Duchamps created yet another dimension to modernistic phenomenology which included a form of cerebral art that made it necessary not simply to view the piece, but to think about it and to react to it. For him, it was not so important that you liked the work, but rather that you thought about it. Duchamps constructed the Three Standard Stoppages (1914-1915) which used found articles such as string and mirror in a wooden box. This piece therefore made use of mathematical questions that were of course, not answerable. The purpose of the work was in fact to create for Duchamps his own physical ‘oeuvre’ (Betancourt, 2003). Roland Barthes created the idea that what we see is not reality if it is reproduced. Barthes viewed a picture of his mother with the knowledge that although it was his mother in the picture, it was also not his mother. It was really only a representation of her (Barthes, 1980). The question is really, what is the individual experience of the photograph? The experience of the individual is very different depending on whether or not of course, you know the object depicted. We see that phenomenology has been used for many years in the arts and in writing, and now we look specifically at the work of Peter Zumthor. Peter Zumthor was born in Switzerland on the 26 April 1943. Zumthor was the son of a cabinet maker and learnt carpentry early in life. He studied at the Pratt Institute in New York and was awarded the Carlsberg Architecture Prize in 1998 (Spiritus Temporis, 2005). Peter Zumthor also wrote extensively about his philosophy for architecture saying that: â€Å"In order to design buildings with a sensuous connection to life, one must think in a way that goes far beyond form and construction. † (Zumthor in Arcspace, 2009). The phenomenological approach of Zumthor’s work is clear in this statement as it employs the purpose and necessity of thinking about the work more than merely accepting it as a piece in which we either reside or gather. For Zumthor, the building not only has to be facilitative, but also be emotionally or sensually charged. It is only in this manner that we are able to connect with it on a personal level. The building is itself, and does not have to be representational of anything. In other words, as the Chartres Cathedral is representational of a religious artefact, Zumthor’s work has an existence beyond its representation (Zumthor in Arcspace, 2009). The Kolumba Art Museum of the Archdiocese of Cologne is a culmination of old and new religious art which was meant initially to make one think about how the two worlds intercept (Carrington, 2008). It is described as a museum of reflection (Carrington, 2008). First founded in 1853 by the Society for Christian Art and is home to 2 000 years of religious art. The most important aspect of this art however, is that it has two parallel histories. The original building was almost completely destroyed during World War II and during the year of 1973, excavations revealed medieval, Roman and Gothic remains. All the ruins were used by Zumthor to collaborate the history into one astounding piece of work (Carrington, 2008). Zumthor essentially raised the walls on cement covered steel columns and embedded both sets of historical ruins into the new walls (Carrington, 2008). The result is an amalgamation of old and new that somehow allows the viewer to notice the old rather than the new while also providing us with the same vision Zumthor himself had. Upon viewing the structure it appears to be a patchwork that is carefully constructed to produce a time-frame continuum. Yet while the building is a thoughtful invocation of old and new, it is also environmentally considered. It is constructed with ‘filter walls’ that have a air and light permeable membrane which is separated between the chapel and the exhibition rooms (Architectural News, 2007). Zumthor collaborated the use of the old world material with brick, mortar, plaster and terrazzo as a backdrop for the artworks exhibited (Architectural News, 2007). Clearly, if Zumthor wanted to he could have created a modernistic and highly technological piece of architecture like the Sydney Opera House, but his sensitivity as an artist allowed him to produce a dignified and respectful piece of architectural history that is not seen before. Windows placed across the entire space of the wall allows light to enter at all directions and also provides changing lights spaces at different times of the day (Architectural News, 2007). There is not a great difference in colour between the old and the new parts of the building considering the different materials used at any time. The gothic vaults that appear along the side of the building are embedded onto plastered and textured walls. The texture however, does not appear directly behind the gothic facade, but rather some meters above it. This means that there is no detraction from the original facade (Figure 1). Kolumba Art Museum Figure 1 Markus Bachmann (Architectural News) 2007. The Therme Vals, Switzerland has a completely different countenance altogether. Zumthor appears to be a master at replacing older structures with refreshing new ones. The spa reopened in 1996 after it was reconstructed by Zumthor from the original 1960’s building (McLaughlin, 2006). Zumthor created a modern bathing complex out of 60 000 local quartzite slabs. The buildings itself appears to be truly new age and almost alien-like, with granite dotted around geometric and glass sliding doors. In a sense, Zumthor has attempted to internalise the mountain backdrop of the exterior of the building, by incorporating the natural light available through frosted and clarified glass (Baus, 2007: 9). Holes in the sky-lights of the slabs allow natural light into the rooms where the baths are situated. The floor plan reveals lights situated under the water in the baths that glow a magical blue in the evening and is a perfect place to reflect upon ones self (Baus, 2007: 14). This is of course, the point of a spa, that one is assisted in self exploration. The domes appear to resemble eyes placed upon a shield from which the light is radiated. The purpose of this architecture is therefore not only to accommodate and enhance well being, but also to accommodate the natural environment (Baus, 2007: 5). The building itself resembles the gentle ebb and flow of the stream that feeds the spa as well as the Alpine mountains that surround it. The interior glass is frosted with yin/yang shaped apertures that allow the light into the building as seen in figure two. One is quickly able to see how the light is utilised to produce an ethereal and magical area of meditation which is particularly important to the person who is attempting to find emotional help. It is not a palatial and sentimental piece as is seen in the art museum, but then the personality of the people visiting it is not likely to be the same either. Figure 2 Interior Vals Spa – www. flickr. com/photos/amirkorour/269995495/ Remove frame The loss of senses is a contributing factor to emotional disruption and the allowance of this building to connect with the beautiful environment facilitates the reconnection of the person with the senses whether they be beauty, love, peace or euphoria. Sensory deprivation is something we have come to tolerate as humans due in part to our fast paced lifestyles and our intense need for social airs and graces. In a space such as the Vals Spa, we are able to shed these nuances of life and expect to be move back towards what Zumthor had previously explained was a sensual connection with the environment. In an interview with Zumthor available online the Termae of Stone is explained by the man himself. Zumthor states that he wanted the visitors to be able to connect with the environment and to be able to find themselves within the architecture (Zumthor, 2007). Zumthor also wanted the architecture to be a part of the healing process rather than an abstract work of art on its own. For this reason it must facilitate the human experience rather than detract from it (Zumthor, 2007). The meaning behind the architecture is that is becomes almost a mythical and ritualistic appearance of cleansing in a very spiritual manner. The spiritual is inherent in the building by virtue of it meaningful change and by symbolism. Zumthor uses the ritual of removing ones clothing as a part of this stripping of extraneous material to reveal the purity of self and of the environment, essentially becoming one with it (Zumthor, 2007). Stone and skin are two of these important factors as well as the senses being able to experience different temperatures of the water and textural changes in the light and building material. Coupled with this is an acoustic effect that tantalises all the senses: touch, sound, sight and taste. There is a clear parallel between the building and its meaning which is the essence of phenomenology. This was also attempted by Frank Lloyd Wright many years before at Falling Waters. Zumthor states too that on a formal level everything is simple and un-intrusive, an important aspect of the purpose of a healing spa. Part water and part stone, the functionality of the material is elemental to the human body which is mainly water itself (Zumthor, 2007). There is a juxtaposition between the mobility of water and the solidity of stone similar to the opposites visible in the art museum which old and new are encapsulated together. Zumthor clearly also enjoys the opposing of various opposite sets as well as the sensuality that theses opposites grant the viewer. For most people healing entails the need for the senses to be reawakened and for experience to be reinvented. In a sense, we stop experiencing the world around us when we run out of time or are clinging to the need to survive rather than seeking time for the self and its needs. The idea of a spa is not only the range of treatments that it gives the person, but also a healing form within where the person is able to completely relax. The reflection of light against the monochromatic pool floors is the same example used in the Art Museum at Kolumba where the light allowed into the building illuminates the various pieces differently all the time. Only natural light can do this, not artificial. For Zumthor, thinking is also important to the individual, because thinking is what makes us different from one another. In the same way as we do not all think in the same way, light reflections are never the same at any given time. The result is purely interpretive and hermeneutic. The effect is as much psychological as it is physiological and the spa is as much naturalistic as it is modern which is largely thanks to the quartzite slabs Zumthor has used. Zumthor is quick to explain it is his own idea of the architecture that he wishes to convey and that he takes the liberty of interpreting the piece the way he sees it (Zumthor, 2007). The idea of the piece is always accompanied by a powerful image and the visualisation of the experience (Zumthor, 2007). For Zumthor it is never an abstract idea, it is very clear. The first images that Zumthor has upon undertaking an architectural piece are naive and child-like and gradually mature into something realistic (Zumthor, 2007). The process of building never loses the initial image even though it is built upon and matured. For him it is a self defining form of architecture and not an abstract, detached one (Zumthor, 2007). Interestingly this is opposite to the previously mentioned modernist architect Antonin Gaudi whose architecture was outrageously abstract and indulgent. Zumthor has clearly focussed on communication, opening the ‘mouth’ of the architecture to allow his image to proceed. Communication is key to the hermeneutic experience, predominantly because communication is the way we define ourselves and others. It is the way we are able to relate to one another and it the only observable practice there is to humanity. Zumthor is therefore also humanistic in his approach to art and architecture. Jacky Bowring describes how as Westerners we have become detached from our senses and uses the example of Anthony Giddens that globalisation, westernisation and modernisation are intertwined. This means that the global village is slowly but surely become a Western one where sensory deprivation causes the volcanic outburst of deviant behaviour (Bowring, 2005: 81). But Western culture is also dominated by the visual meaning that what is pleasing to the eye is considered pleasing to the soul. However, other cultures such as the Indian and the Oriental employ the use of all the senses and produce an holistic effect (Bowring, 2005: 81). For this purpose, Zumthor cleverly escapes the Westernized jail in which Western society had holed itself and employs the use of other sense that essentially make us humans rather than just non-rational animals (Bowring, 2005: 81). Bowring believes that our optical and visual culture has made us deprived of other senses, which is partially true. She states: â€Å"A counter to the one-eyed focus of ocularcentrism is the recognition of senses of place that is found in the philosophy of phenomenology. †(Bowring, 2005: 82). As a result of this deprivation we have become dislocated and not a whole and functional body, hence the need for multi-sensory architecture and connectivity with our environment (Bowring, 2005: 82). For Bowring the problem is that the Western obsession with appearance has caused landscape artists to produce masses of gardens and landscapes that are ‘pretty’ or ‘stunning’ but have no other sensory satisfactions (Bowring, 2005: 83). Sturich looks at the image as a poetic one, as a hermeneutic experience by which we create images that invoke certain feelings and for Zumthor the poetry is an ‘unexpected truth’ (Sturich, 2003: 4). The poetic strengthens our relationship between the world or ourselves, making us more able to experience that world for what it really is – a culmination of all senses and not merely a material setting (Sturich, 2003: 4). Memory is another aspect of the poetic that Zumthor uses as the senses are memory precursors. The senses and the poetic becomes narratives by which we build our current worlds, beliefs and experiences (Sturich, 2003: 6). For this reason, we associate things we do not like with things that have bad memories or experiences. We may not like thatched houses because one caught fire once as a child or we may enjoy the Palace of Versailles because of a sweet cake we indulged in when visiting it. The association of what we enjoy and do not enjoy is based on our experience of it. Zumthor’s idea of what a kitchen should be is based on his memory of his aunt’s house when he was a child, as evidently he has good memories of it (Sturich, 2003: 7). Poetry relates these memories through words, architects relate these memories through their works. Sturich explains that we use buildings as repositories for poetic images that increase our awareness of the world around us (Sturich, 2003: 10). So we have the memory and the poetic image as two aspects of the hermeneutic or phenomenological that facilitate creative and healing properties of the human being and the human mind. Davidovici explains yet another interesting aspect to the phenomenology of Zumthor and that is in the culture of modern Europe. Critically speaking, Zumthor did away with the cultural need for ‘art for art’s sake’ and replaced it with a moral concern for the environment (Davodovici, date unknown: 1). Herzog and de Meuron were two of Zumthor’s counterparts, but there idea of architecture was as an artistic vehicle with a motion towards emotive charging of all materials used in a single building (Davidovici, date unknown: 1). The morphology of the building therefore entertained the idea that humanistic approaches were too formal and there was thus a need for impersonal and neutral surroundings to be banished. Zumthor, in his Kolumba Art Museum gave way to the fact that our memories are embedded in our pasts and that patriotism is a necessary part of national spirit. We see that the use of two to three worlds entwined with the modern gives exactly the right amount of emotive past and sensory present. Zumthor was concerned with creating something that we could â€Å"know, understand and feel. †(Davidovici, date unknown: 4). Again, for Zumthor the idea of building and of dwelling is the same as Heidegger’s that dwelling is the personal and identifiable space where people reside as human beings (Sturich, 2003: 1). The importance of this is that our personal space is a reflection of the self in the same way that it is also impersonal in its creation. It is the way in which we adorn our personal space that allows the true self to become self-evident. The building itself is built by someone else and very rarely is indicative of the self, but in these cases, sometimes this works as a slate upon which one can paint their own image. We see without doubt that Zumthor has created in the Vals Thermal Spa, a place where the individual is able to connect with the self because the surroundings are impersonal. However, it is very clearly natural and down to earth. Compare this for instance to the Hilton Hotel’s dotted around the Unites States that are lavish but also impersonal but offer no real opportunity to connect with the personal. The same sort of comparison can be made between the Chartres Cathedral and the Kolumba Art Museum where both themes are the religious. In the Chartres Cathedral the purest place of the architecture as a product is itself. The Kolumba, by contrast is that it should show the character of the works contained within it rather than the building itself. Zumthor also shows a very important character reference too in that the main source of his inspiration was not to show himself as being a great architect, but to preserve the past. The gothic and Romanesque arches that Zumthor preserves are beautifully melded into the modern cement walls of Zumthor’s own interpretation. The interior is also clearly geared towards preserving the art within it rather than being a work of art in itself. The need to preserve the past is also related to the importance of memory and the personal relationship both a nation and an individual has. The Vals Thermal Spa on the other hand is created in an impersonal and natural way so as not to detract from the experience that one is supposed to have. Here begins the phenomenological application: the experience, the interpretation and the analysis. The first thing one is goaded into at the spa is to experience the multi-sensory application. You are required to feel the water, see the reflection, hear the sounds of the water and also taste it. This is important to the personal experience, as every one has different ones. Also important is the fact that within the water the quartzite is locally mined and is not an anachronism for the person viewing it. The purpose is to reawaken emotion and experience of the world around and you as well as be able to reconnect with the self. We see that phenomenology is concerned with action, reaction and interaction, which is also personally experienced rather than imposed upon the individual. The theory of Roland Barthes was also pertinent to the understanding that what we see visually is not always the realistic, it is often merely a representation. What the other senses do is to make that sight into a tangible reality. One can see a picture of a something and it excites the visual sense but when we are able to feel it, smell and taste it, it becomes a tangible reality. The baths of Thermal Spa able to be felt, seen, and heard and are therefore real things. Salvador Dali also attempted to make the representational into a reality, he tried to convert the two dimensional into the three dimensional causing the person to optically believe they are able to touch and fell the article or the object. One is able to analyse the feelings one has only from the personal standpoint and never from the third person, hence the personal nature of narratives and novels where the writer places themselves in the position of the character in order to create the person they wish to describe. This means that the poetic narrative is also an inversion in a sense, of the phenomenological even though it is not truly the personal experience: the personal experience being of the first person rather than an interpretation of the first person by the third person. The importance of the relationship between the personal and the interpersonal is evident again in the fact that although we cannot prove how we feel or how others feel, we are at least able to empathise with what we see and feel around us. Zumthor is clearly wanting us to reconnect with the surroundings, our sense and our selves. In conclusion Peter Zumthor has succeeded in creating an architectural world where there is a good relationship between the past and the present; the natural and the man-made; and the self and the world. It is not merely based on the visual but also on all the senses. He relates to the human need to embrace the sensual rather than living the life of prescribed society. While science offers us a very distinct set of truths about the world around us, such as that the earth is round and that the body needs water, what it does not do is tell us how we think or why we do what we do. In architecture such as Zumthor’s, the architect recognises that in human nature very little is formulaic and we are seldom able to predict human behaviour. Certainly this cerebral art is a departure from classical, also formulaic artistic pieces. The thinking architecture is one that is able to produce the self in the its architecture and is able to allow the person to reflect on the environment as well as themselves. The Art Museum is a place where the individual is able to reflect on the person’s national past while also allowing us to be able to see the changes over time in the art in question. The Thermal Spa allows the person to reflect on themselves as well as their surroundings, hereby facilitating healing.

Essay on Global Companies Essay

International companies are characterized by many factors among them geographical dispersion, demand for rationalization and differentiation and cultural diversity. These factors pose numerous challenges to international HR managers on how to ensure successful performance of their functions. The paper highlights various challenges the mentioned factors presents to IHRM in their work. It assembles evidence and previous research findings done by other writers. The paper also demonstrates why managing international HR is more difficult than managing HR in a large domestic firm. Challenges presented by geographical dispersion to international HR directors As employees in an international company come from different backgrounds and possess diverse experience, it’s hard to standardize pay and conditions of work (Briscoe & Schuler, 2009). Doing so is likely to bring conflicts among staff doing similar jobs in different locations. Standardizing working conditions is also tricky because of diverse cultures, rules and laws of different nations. Home working conditions and policies cannot be transferred to another country due to existence of different legislations in host country. In such a case each host country could have a slightly different working condition (Paik and Vance, 2006). Due also to natural differences in each country, it is hard to standardize business processes and pay in a multinational company. One of challenges faced by international HR managers is dealing with multiple time zones. This time differences bring about difficulties for managers to consult with key decision makers (Herod and Yearn, 2002). These difficulties may result into ramifications on productivity. Closely associated with this problem is the continued heavy reliance on face to face communications since improvement in technologies has not completely bridged this gap (Punnett, 1989). Rolling out a non conflicting international compensation system is a challenge to international HRM. This is due to the fact that conditions of employment differ among various categories of employees (Mendenhall et al, 1987). In addition, there exist variations among countries on ways of compensating workers. Salary levels for the same job also differ amongst countries. As a matter of fact compensation packages can be a source of conflict . This is mostly occurs when local employees start comparing their salary to those of expatriates and may conclude that there is no fairness. Expatriates in most of cases have better compensation packages than local employees doing the same job. As a result local employees may feel unappreciated and treated unfairly. Consequently, it may result to resentment and eventually lower employees’ morale and productivity (Roberts et al, 1998). The process of hiring and placement of different national categories of workers is very complex in global context. International HRM involves movement of people across international boundaries (Briscoe & Schuler, 2009). In such a case staffing becomes very hard as managers face hard choices to make from three pools of employees categories: employees from host country where the company operates (HCN), nationals from home country where the firm has headquarter (PNC) and citizens of other countries that may be sources of labor (TNC). The three types of employee groups have different backgrounds. This therefore requires the managers to have international mindset and adopt policies that facilitate establishment of internationally oriented staff (Briscoe & Schuler, 2009). Distinct countries have different government policies and ethical requirements which can pose problems to international HR managers. For instance an international company situated in South Africa would have expatriates willing to work there required to undergo a compulsory HIV/AIDS test. This could result to loss of talented employees who may not be willing to comply with the requirement. It would be therefore a challenge to managers to convince such expatriates to accept the requirement (Roberts et al, 1998). International HR managers also face difficulties determining compensation package among various categories of workers. This is so because of varied nationalities of workers and different levels of economic development in home countries. It therefore becomes hard to determine some form of compensation for instance hardship allowance (Hofstede, 1992). International scene is also more complex due to language differences. This becomes a challenge in ease of accessing company’s documents such as vision and mission statements, company’s records and procedure manuals. Language barriers could also impede communication and sharing of information among the workers. This can only be solved by language standardization (Laurent, 1986). The nature of employee involvement also varies depending on country and institutional factors. Employee involvement is crucial in any organization and results into enhanced communication, coordination of tasks, enhanced information sharing and reduced turnover. Employee involvement is however is influenced by organization and national factors such as industrial relations, financial system, social forces and market forces (Petti and Fadel, 1997). Consequently in a global context, the nature of employment will vary due to diverse national forces. Challenges occasioned by need for rationalization and differentiation to international HR directors. Process of rationalization normally involves lowering of organizations operational costs and more improved control (Punnett, 1989). This requires timely provision of information. On a global context, it is a challenge to HR managers to obtain information quickly and to become proactive in achieving business objectives. Due to the complex nature of international organization, it becomes challenging to ensure faster access to high quality information at a significantly business processing cost . However due to rationalization demands in order for the company to remain competitive, managers have to carry out proper compensation, recruitment and placement (Punnett, 1989). Differentiation is the process of distinguishing firms’ products or services from those offered by competitors (Petti and Fadel, 1997). This is done by making them unique and more attractive to a particular target market. Differentiation is normally implemented by ensuring differences in functional features, quality, availability and reputation. Formulation of differentiation strategy is vital for making firms’ products more competitive in a competitive market. In global context it poses challenges for managers to adopt proper strategies in recruitment and selection to ensure the products remain unique and reputable (Petti and Fadel, 1997). Challenges presented by cultural diversity to international HR directors International companies operate in different countries with diverse regulations, standard of living and labor unions (Hofstede, 1992). In some countries, labor unions determine wage policies. In Australia for instance unions negotiate rates of payment on behalf of workers. In other countries like Hong Kong unions have little influence and pay rates are determined by free market. This makes the process of determining pay package very hard to HR managers in global scene (Hofstede, 1992). International HRM must be aware of cultural differences and develop culturally sensitive attitudes for business to thrive (Laurent, 1986). Majority of HRM functions such as compensation; training, recruitment and selection are done according to cultural practices of host nation. Sometimes adapting to local expectation and customs brings more problems. In Indonesia for instance local employees are obliged to employ members of their family. However, acting in such nepotism way may be detrimental to the company since the best fitted persons will not be hired (Punnett, 1989). Diverse norms on methods of motivating employees amongst countries are a key challenge. The use of incentives and gifts for instance may have varied results. In cultures such as America money may be a good motivator. In other cultures such as Japan, non financial incentives for instance job security, social acceptance and promotions may motivate employees better (Mendenhall et al, 1987). The international HR managers are hence challenged to match the motivators with cultural values. International businesses also operate in countries with different cultural differences amongst groups of people in the same country. This ultimately translates into different HRM policies procedures and system. The work of IHRM is therefore determined by cultural aspects of the host country (Petti and Fadel, 1997). This places a challenge to IHRM managers to reconsider each strategy in terms of the country’s cultural condition. Some strategies may work in some country but fail in others. A Hong Kong company dealing with dental services for instance decided to offer a ‘use it or lose it’ policy worth $1000 a year. Initially the company had a high staff turnover of 24%. After a short time, the company’s turnover dropped significantly to 4%. The strategy could not just work in that context (Petti and Fadel, 1997). As the case illustrates, research is required to be conducted amongst employees to establish the kind of strategies which are workable. People also have varied takes and attitudes with regard to contracts. People from western countries think of it just like a contract and will follow it after it’s signed. The Chinese however take it different and prefer continued relationship with their manager. So they will sign it, have a handshake and get to know their manager (Laurent, 1986). Therefore the IHRM has to consider acceptability and adaptability. Diversity management is also a challenge especially managing varying expectations in workplace. Some countries emphasize on gender equity and affirmative action while others do no (Hofstede, 1992)t. In such a case organizations with such policies face difficulties implementing them in some countries. In some parts of the world woman expatriates may experience difficulties in gaining acceptance (Hofstede, 1992). Culture is also a significant constraint in employee performance appraisals and feedback process. Western counties have been found to have different styles of performance appraisals which are difficult to transfer to non western countries (Briscoe & Schuler, 2009). The purpose of appraisal, acceptance of its result and the mode of conduct of the feedback process are also different amongst countries. In some cultures for instance Japan performance appraisal are not acceptable and are normally interpreted as sign of distrust. In other cultures such as Chinese performance appraisals are used to determine pay (Briscoe & Schuler, 2009). Why managing International HR is inherently more difficult than managing HR in a large domestic firm. Unlike domestic firm, international HR involves moving staff across many countries with diverse cultural and economic aspects. As such international HRM is more complex as it deals with different categories of workers from different countries. There are also many aspects and a broad range of issues o take into consideration (Paik and Vance, 2006). To begin with, there are more HR activities to deal with in an international environment. Foreign employees are normally subjected to both domestic and international tax liabilities. This necessitates need to design tax equalization policies to bridge this gap. There are also a lot of international relocation and orientation activities. This may take the shape of arranging pre departure training and providing information such travel details, shopping and schooling. Foreign employees must also be provided with housing, medical care and recreation services. The expatriates also require to be provided by administrative services within which the host country operates. In addition the international HR must provide language translation services (Mendenhall et al, 1987). The international HR manager is also required to take a broad view of issues. This is particularly due to the fact that the managers deal with more than one national group of employees all working together. One such broader perspective would be to ensure that employees working in foreign locations receive foreign premium regardless of their nationality. Such a policy should be implemented without showing preferential treatment to only employees working on overseas assignment but even to foreigners assigned to firm’s home country (Chan, 1994). The IHRM thus has to deal with equity issues with regard to compensation. International HR managers are also required to get more involved in employees personal lives (Herod and Yearn, 2002). The HRM needs to ensure that expatriate employees comprehends compensation package such as cost of living allowances, premium taxes among others. He also needs to ensure they understand housing arrangements and health care. This creates need for establishment of a section that provides services such as handling of employees’ investments, banking and coordinating home visits. If for instance there is to be a relocation or transfer, the HR department will need to know the employees personal life in order to provide the level of support required. This is particularly due to some governments requirements like marriage certificate in order to stay in some locations. In addition the HR managers may want to assist the family left behind at home country (Herod and Yearn, 2002). In the international context, there is always need to change emphasis in HR operations as workforce varies. This mostly occurs when more trained locals become available and hence the need of foreign employees decline. Resources which had previously allocated to allocated to expatriate issues have thus to be transferred to local stuff training and development. This broadens HR activities such as training, planning and compensation (Chan, 1994). International assignments increase exposure to risks that HRM has to deal with. There are more severe consequences resulting from expatriate failure and underperformance. Such a failure may be too costly to the company in terms of salary, relocation expenses and travel costs. There could also be loss of foreign share, market share and breakdown of foreign relations. The HR department must also consider possible acts of terrorism. On top of that the HR must put in place emergency evacuation procedures for assignments in locations susceptible to epidemic crises (Roberts et al, 1998). International HRM also has to deal with more and complex external factors. The company must comply with government’s requirements about staffing in foreign locations. Moreover, local codes of conduct and religious groups’ regulations must be obeyed (Roberts et al, 1998). Conclusion The research and evidence presented in the paper demonstrates that managing HR in global context is more challenging and complex than in domestic scene. There are many issues which constrain international HR managers and which are unique to each country. The managers are therefore required to be flexible and adopt a local responsive strategy in order to have successful and sustainable businesses.

Best Alternative to a Negotiated Agreement

Care should be taken, however, to ensure that deals are accurately valued, taking into account all considerations, such as relationship value, time value of money and the likelihood that the other party will live up to their side of the bargain. These other considerations are often difficult to value, since they are frequently based on uncertain or qualitative considerations, rather than easily measurable and quantifiable factors. The BATNA is often seen by negotiators not as a safety net, but rather as a point of leverage in negotiations. Although a negotiator’s alternative options should, in theory, be straightforward to evaluate, the effort to understand which alternative represents a party’s BATNA is often not invested. Options need to be real and actionable to be of value,[1] however without the investment of time, options will frequently be included that fail on one of these criteria. [citation needed] Most managers overestimate their BATNA whilst simultaneously investing too little time into researching their real options. [citation needed] This can result in poor or faulty decision making and negotiating outcomes. Negotiatiors also need to be aware of the other negotiator’s BATNA and to identify how it compares to what they are offering. 2] BATNA was developed by negotiation researchers Roger Fisher and William Ury of the Harvard Program on Negotiation (PON), in their series of books on Principled negotiation that started with Getting to YES, unwittingly duplicating a game theory concept pioneered by Nobel Laureate John Forbes Nash decades earlier in his early undergraduate research. [citation needed] Contents [hide] 1 Definitions 2 Examples 2. 1 Selling a car 2. 2 Purchasing 3 See also 4 References 5 External links [edit]Definitions BATNA An acronym defined by negotiation researches Roger Fisher and William Ury which means Best Alternative to a Negotiated Agreement. 3] It is the alternative action that will be taken if your proposed agreement with another party result in an unsatisfactory agreement or when an agreement cannot be reached. Historical Theories The Nash Equilibrium as developed by John Forbes Nash, the father of Game Theory, is described in Getting to YES[3] as the underlying idea for the concept of BATNA in negotiation (Roger B. Myerson, April 1996). [4] In a nutshell, Nash Equilibrium theory explains that, if in a group of players, each player has in consideration the other player’s decisions, then no one will benefit from altering their decisions, if the other players haven’t either. 5] Example of Nash Equilibrium Theory Amy and Phil are in Nash Equilibrium if Amy is making the best decision she can, taking into account Phil’s d ecision, and Phil is making the best decision he can, taking into account Amy’s decision. Likewise, a group of players are in Nash Equilibrium if each one is making the best decision that he or she can, taking into account the decisions of the others. We cannot think of BATNA without first understanding the notion of negotiation. Negotiation has been part of the â€Å"business† mentality of human beings as we know it, since the beginning of mankind. Take for example the Israeli-Palestinian conflict, one of the longest ongoing negotiations of the kind, based primarily on the dispute over land (UN, 1948). We negotiate every single day of our lives; whether it is goods, commodities, ideas, positions, or money. The list could be endless. For this reason knowing how to negotiate is very important. The idea is to have all parties mutually satisfied with the results achieved through the highest standards of (Ethics) and legitimate standards. In no other time of world history as the modern days, has the ability and the necessity of knowing how to negotiate, using sophisticated tools and civil discourse been so essential to society. As explained in Getting to YES, â€Å"We are each participants in a pioneering generation of negotiators†¦ it is central to human life and the survival of our species. â€Å"[3] Negotiations Concepts Leading to Good BATNA A ruthless, aggressive and cold blooded negotiation style is the framework approach most people have when it comes to negotiation,[6] a theoretical example of that is Adversarial Approach Style Negotiation. 6] But in reality, as mentioned by experts and researchers such as Fisher and Ury [3] it doesn’t have to be that way. As the world moves to more sophisticated platforms of communication, negotiation follows the trend and Problem-Solving Approach(citation) is in a way, the â€Å"antidote† of Adversarial Approach Style Negotiation. Getting to YES[3] sugge st an Interest-Based Model for the use of Problem-Solving Approach. Interest-Based Model focus on separating the person (positional) from the problems (resolution) and then concentrate on the resolution. This way allowing for both parties in a distributive way to get the results they both want. ABC’s of BATNA Having a BATNA (Best Alternative to a Negotiated Agreement) as part of the negotiation is imperative as the name explains. No one should come to the negotiation table without a BATNA. [7] This will allow for intelligent negotiation and bargain zones. In addition to having a BATNA, parties should have a Bottom Line or Reservation Price. What this prevents is that neither party will come out with agreements they don’t need[3] Often, parties go to the negotiation table with what they imagine is a great BATNA. For example, how many times have you walked into a job interview with no other solid job offers in hand, let alone perspective of solid salaries, benefits and other great things you are looking for in a job. [3] The ability to be in a powerful position so the negotiation can be intelligent and satisfactory to both parties requires preparation and research. So do not cut yourself short for the lack of having a better BATNA at all times. [3] If having a good BATNA in essential, developing a BATNA is equally important. Let’s assume that you are going to work for a company that is not offering you the salary you desire. Instead, you know that they offer other perks such as, company cars, luxurious vacation homes, and state-of-the-art computers and laptops to their employees. In other words, Alternatives. [3] Attractive Alternatives is what you want to explore in order to develop a very strong BATNA. In Getting to YES, the authors give 3 suggestions of how you can accomplish this: Inventing a list of actions you might take if no agreement is reached Converting some of the more promising ideas and transforming them into tangible and partial alternatives Selecting the alternative that sounds best BATNA rules Parties should never disclose their BATNA, unless, the alternative is better. In other words, if your best alternative to a negotiated agreement is better than what the other party is offering, then disclosing it, is to your advantage. If on the other hand it is worse, then do not disclose it. BATNA in Cross Cultural Frameworks Currently in the United States and due to recent world events, there are more and more individuals with a different cultural background and approach to negotiation. When individuals come to the negotiation and bargaining table ready to use their BATNA, and one of the parties is from a different culture, there is a tremendous game change in approach. Both parties need to think and account for cultural cognitive behaviors. Both parties must expand their thinking negotiation hats by not allowing external judgment and biases to affect the negotiation. As mentioned earlier, separate the individual from the objective[3] For example imagine you are negotiating with a party from an Arab Nation. Is this going to effect your view of how you are going to negotiate? Or even if you are the party from that nation, are you prepared to receive an offer lower than your BATNA because you know you are from a different culture. The previous is a very simple example, but the purpose here as Gulliver[8] mentioned, is for negotiation parties to be aware. Disclosure This is a very new topic in negotiation and there aren’t many frameworks in place to help this scenario. Nonetheless, preparation at all levels, including prejudicial free thoughts, emotional free behavior, biases free behavior are just a few ways according to the Handbook of Negotiations and Culture[9] that can helps in the right direction. edit]Examples The following examples illustrate the basic principles of identifying the BATNA and how to use it in further negotiations to help value other offers. [edit]Selling a car If the seller of a car has a written offer from a dealership to buy the seller’s car for $1,000, then the seller’s BATNA when dealing with other potential purchasers would be $1,000 since the seller can get $1,000 for the car even without reaching an agreement with an alternative purchaser. In this example, other offers that illustrate the difficulty of valuing qualitative factors might include: An offer of $900 by a close relative An offer of $1,100 in 45 days (what are the chances of this future commitment falling through, and would the seller’s prior BATNA (the $1,000 offer from the dealership) still be available if it did? ) An offer from another dealer to offset $1,500 against the price of a new car (does the seller want to buy a new car right now, and the offered car in particular? ) [edit]Purchasing Buyers are often able to leverage their BATNA with regards to prices. This is done through buying from the lowest cost or best value seller. [edit]See also Getting to YES Getting past No Conflict resolution research Alternative Dispute Resolution in a Nutshell [edit]References ^ Best Alternative to a Negotiated Agreement | Negotiation Experts ^ Negotiation, Readings, Exercises and Cases, Roy J. Lewicki ^ a b c d e f g h i j Fisher and Ury, Roger and William (2011). Getting to YES. Penguin Books. pp. 1–170. ISBN 978-0143118756. ^ Myerson, Roger B. â€Å"Nash Equilibrium and the History of Economic Theory†. Nash Equilibrium and the History of Economic Theory. Journal of Economic Literature. Retrieved 1 October 2012. ^ Hawkins and Steiner, Jeff and Neil. â€Å"The Nash Equilibrium Meets Batna†. Gamed Therory Varied Ueses in ADR. Harvard University Press. Retrieved 1 October 2012. ^ a b Nolan-Haley, Jaqueline M (2001). Alternative Dipute Resolution in a Nutshel. Thomson West. pp. 39–50. ISBN ISBN 978-0314180148. ^ Honeyman and Schneider, Andrea and Chistopher (2006). The Negotiators Fieldbook: Desktop Reference. American Bar Association. pp. 200–300. ISBN 978-1590315453. ^ Gulliver, P. H (1979). Disputes and Negotiation: A Cross Culture Perspective. Academic Press. p. 287. ^ Brett and Gelfand, Jeanne and Michael (2004). The Handbook of Negotiations and Best Alternative to a Negotiated Agreement Care should be taken, however, to ensure that deals are accurately valued, taking into account all considerations, such as relationship value, time value of money and the likelihood that the other party will live up to their side of the bargain. These other considerations are often difficult to value, since they are frequently based on uncertain or qualitative considerations, rather than easily measurable and quantifiable factors. The BATNA is often seen by negotiators not as a safety net, but rather as a point of leverage in negotiations. Although a negotiator’s alternative options should, in theory, be straightforward to evaluate, the effort to understand which alternative represents a party’s BATNA is often not invested. Options need to be real and actionable to be of value,[1] however without the investment of time, options will frequently be included that fail on one of these criteria. [citation needed] Most managers overestimate their BATNA whilst simultaneously investing too little time into researching their real options. [citation needed] This can result in poor or faulty decision making and negotiating outcomes. Negotiatiors also need to be aware of the other negotiator’s BATNA and to identify how it compares to what they are offering. 2] BATNA was developed by negotiation researchers Roger Fisher and William Ury of the Harvard Program on Negotiation (PON), in their series of books on Principled negotiation that started with Getting to YES, unwittingly duplicating a game theory concept pioneered by Nobel Laureate John Forbes Nash decades earlier in his early undergraduate research. [citation needed] Contents [hide] 1 Definitions 2 Examples 2. 1 Selling a car 2. 2 Purchasing 3 See also 4 References 5 External links [edit]Definitions BATNA An acronym defined by negotiation researches Roger Fisher and William Ury which means Best Alternative to a Negotiated Agreement. 3] It is the alternative action that will be taken if your proposed agreement with another party result in an unsatisfactory agreement or when an agreement cannot be reached. Historical Theories The Nash Equilibrium as developed by John Forbes Nash, the father of Game Theory, is described in Getting to YES[3] as the underlying idea for the concept of BATNA in negotiation (Roger B. Myerson, April 1996). [4] In a nutshell, Nash Equilibrium theory explains that, if in a group of players, each player has in consideration the other player’s decisions, then no one will benefit from altering their decisions, if the other players haven’t either. 5] Example of Nash Equilibrium Theory Amy and Phil are in Nash Equilibrium if Amy is making the best decision she can, taking into account Phil’s d ecision, and Phil is making the best decision he can, taking into account Amy’s decision. Likewise, a group of players are in Nash Equilibrium if each one is making the best decision that he or she can, taking into account the decisions of the others. We cannot think of BATNA without first understanding the notion of negotiation. Negotiation has been part of the â€Å"business† mentality of human beings as we know it, since the beginning of mankind. Take for example the Israeli-Palestinian conflict, one of the longest ongoing negotiations of the kind, based primarily on the dispute over land (UN, 1948). We negotiate every single day of our lives; whether it is goods, commodities, ideas, positions, or money. The list could be endless. For this reason knowing how to negotiate is very important. The idea is to have all parties mutually satisfied with the results achieved through the highest standards of (Ethics) and legitimate standards. In no other time of world history as the modern days, has the ability and the necessity of knowing how to negotiate, using sophisticated tools and civil discourse been so essential to society. As explained in Getting to YES, â€Å"We are each participants in a pioneering generation of negotiators†¦ it is central to human life and the survival of our species. â€Å"[3] Negotiations Concepts Leading to Good BATNA A ruthless, aggressive and cold blooded negotiation style is the framework approach most people have when it comes to negotiation,[6] a theoretical example of that is Adversarial Approach Style Negotiation. 6] But in reality, as mentioned by experts and researchers such as Fisher and Ury [3] it doesn’t have to be that way. As the world moves to more sophisticated platforms of communication, negotiation follows the trend and Problem-Solving Approach(citation) is in a way, the â€Å"antidote† of Adversarial Approach Style Negotiation. Getting to YES[3] sugge st an Interest-Based Model for the use of Problem-Solving Approach. Interest-Based Model focus on separating the person (positional) from the problems (resolution) and then concentrate on the resolution. This way allowing for both parties in a distributive way to get the results they both want. ABC’s of BATNA Having a BATNA (Best Alternative to a Negotiated Agreement) as part of the negotiation is imperative as the name explains. No one should come to the negotiation table without a BATNA. [7] This will allow for intelligent negotiation and bargain zones. In addition to having a BATNA, parties should have a Bottom Line or Reservation Price. What this prevents is that neither party will come out with agreements they don’t need[3] Often, parties go to the negotiation table with what they imagine is a great BATNA. For example, how many times have you walked into a job interview with no other solid job offers in hand, let alone perspective of solid salaries, benefits and other great things you are looking for in a job. [3] The ability to be in a powerful position so the negotiation can be intelligent and satisfactory to both parties requires preparation and research. So do not cut yourself short for the lack of having a better BATNA at all times. [3] If having a good BATNA in essential, developing a BATNA is equally important. Let’s assume that you are going to work for a company that is not offering you the salary you desire. Instead, you know that they offer other perks such as, company cars, luxurious vacation homes, and state-of-the-art computers and laptops to their employees. In other words, Alternatives. [3] Attractive Alternatives is what you want to explore in order to develop a very strong BATNA. In Getting to YES, the authors give 3 suggestions of how you can accomplish this: Inventing a list of actions you might take if no agreement is reached Converting some of the more promising ideas and transforming them into tangible and partial alternatives Selecting the alternative that sounds best BATNA rules Parties should never disclose their BATNA, unless, the alternative is better. In other words, if your best alternative to a negotiated agreement is better than what the other party is offering, then disclosing it, is to your advantage. If on the other hand it is worse, then do not disclose it. BATNA in Cross Cultural Frameworks Currently in the United States and due to recent world events, there are more and more individuals with a different cultural background and approach to negotiation. When individuals come to the negotiation and bargaining table ready to use their BATNA, and one of the parties is from a different culture, there is a tremendous game change in approach. Both parties need to think and account for cultural cognitive behaviors. Both parties must expand their thinking negotiation hats by not allowing external judgment and biases to affect the negotiation. As mentioned earlier, separate the individual from the objective[3] For example imagine you are negotiating with a party from an Arab Nation. Is this going to effect your view of how you are going to negotiate? Or even if you are the party from that nation, are you prepared to receive an offer lower than your BATNA because you know you are from a different culture. The previous is a very simple example, but the purpose here as Gulliver[8] mentioned, is for negotiation parties to be aware. Disclosure This is a very new topic in negotiation and there aren’t many frameworks in place to help this scenario. Nonetheless, preparation at all levels, including prejudicial free thoughts, emotional free behavior, biases free behavior are just a few ways according to the Handbook of Negotiations and Culture[9] that can helps in the right direction. edit]Examples The following examples illustrate the basic principles of identifying the BATNA and how to use it in further negotiations to help value other offers. [edit]Selling a car If the seller of a car has a written offer from a dealership to buy the seller’s car for $1,000, then the seller’s BATNA when dealing with other potential purchasers would be $1,000 since the seller can get $1,000 for the car even without reaching an agreement with an alternative purchaser. In this example, other offers that illustrate the difficulty of valuing qualitative factors might include: An offer of $900 by a close relative An offer of $1,100 in 45 days (what are the chances of this future commitment falling through, and would the seller’s prior BATNA (the $1,000 offer from the dealership) still be available if it did? ) An offer from another dealer to offset $1,500 against the price of a new car (does the seller want to buy a new car right now, and the offered car in particular? ) [edit]Purchasing Buyers are often able to leverage their BATNA with regards to prices. This is done through buying from the lowest cost or best value seller. [edit]See also Getting to YES Getting past No Conflict resolution research Alternative Dispute Resolution in a Nutshell [edit]References ^ Best Alternative to a Negotiated Agreement | Negotiation Experts ^ Negotiation, Readings, Exercises and Cases, Roy J. Lewicki ^ a b c d e f g h i j Fisher and Ury, Roger and William (2011). Getting to YES. Penguin Books. pp. 1–170. ISBN 978-0143118756. ^ Myerson, Roger B. â€Å"Nash Equilibrium and the History of Economic Theory†. Nash Equilibrium and the History of Economic Theory. Journal of Economic Literature. Retrieved 1 October 2012. ^ Hawkins and Steiner, Jeff and Neil. â€Å"The Nash Equilibrium Meets Batna†. Gamed Therory Varied Ueses in ADR. Harvard University Press. Retrieved 1 October 2012. ^ a b Nolan-Haley, Jaqueline M (2001). Alternative Dipute Resolution in a Nutshel. Thomson West. pp. 39–50. ISBN ISBN 978-0314180148. ^ Honeyman and Schneider, Andrea and Chistopher (2006). The Negotiators Fieldbook: Desktop Reference. American Bar Association. pp. 200–300. ISBN 978-1590315453. ^ Gulliver, P. H (1979). Disputes and Negotiation: A Cross Culture Perspective. Academic Press. p. 287. ^ Brett and Gelfand, Jeanne and Michael (2004). The Handbook of Negotiations and

The effects of smoking on an individual Research Paper

The effects of smoking on an individual - Research Paper Example r, the bottom line is, any form smoking is a danger to the human health and so this paper will discuss how smoking causes many dangerous diseases, also how it maximally affects women who smoke, including pregnancy complications, and finally how second hand smoke is also a dangerous aspect. A recent increase in smoking habits among young adults in United States is a major public health concern. It is estimated that more than 11 million young adults are currently smoking. Studies show that smoking initiations are highly at the ages of 18 and 19 years respectively with full addiction by the age of 20 to 22 years. (Wendt, 2008). Studies have shown that for those who are smokers, 72% in adulthood started when they were young adults and continued the habit to adulthood while only 7% of current adult smokers started later in their lives. Young adulthood is pivotal in establishment of smoking because dramatic changes in their lives, work settings, networks of social circles and living arrangements or school or college increases the risk of smoking. Then, while transitioning to professional career, marriage, parenthood or other occupational roles, this smoking habit will continue, even accentuating. Cigarette smoking is a one the major preventable causes for many diseases in the United States and throughout the world. Cigarette smoking causes more than 400,000 deaths annually through one disease or another. (Wendt, 2008). That is, although smoking does not directly kill, using various toxic substances like tobacco, marijuana, opium, etc, etc it will lead to various medical complications and disease, which will cut short lives. Smoking cigarettes using these substances generates smoke containing high doses of nicotine and other dangerous elements, and this smoke will enter the human body affecting the various organs leading to various diseases. (Wendt, 2008). The smoke and thereby dangerous chemicals will first enter the lungs and that where it will have a major impact.

Cash Flow Problems Coursework Example | Topics and Well Written Essays - 1500 words

Cash Flow Problems - Coursework Example The company could also not afford to generate sufficient income to pay the salaries and wages of its employees. Consequently, the business had to close down altogether (Wires, 2011, p.14). Having been established in 1950, the company eventually closed down after 61 years of its operation in the automobile markets Cash flow problems are known to cause 70% of businesses to fail within their first year of establishment, making cash flow problems the major reason for business failure. (Wires, 2011, p.13). The dangers associated with cash flow problems cannot be predicted most of the times. Thus, even the well-established businesses falls into this risk. Although cash flow problems are the reasons for the business failure of the company, there are other various reasons as to why the company could not revive. Due to a lack of goodwill and not a so good reputation, the company could not access credits. Consequently, any means through which the company could improve its operations and head b ack to the path of profit making was blocked by a lack of access to credit (Howard, 2011, p.21). The size of the company is another factor that contributed to its failure. The company is small sized, thus it becomes difficult to compete with other large automobile companies in the industry. The small size is in terms of both its asset base and the market niche that the company has effectively curved. Another problem that forced the company to close down is its dependence on technology from other automobile firms. The company lacks the ability to develop or purchase production technologies of its own, and have thus been dependent on other companies for the provision of such technologies. With such dependence, it means that the company cannot effectively compete with the companies that are providing it with production technologies (Zeitch, 2011, p.9). Low sales have however been the main reason as to why the company could not meet its required cash generation to cover its expenditure. Having projected to sell between 50,000 and 60,000 vehicles in the year 2010, the company only managed to sell 31,696 cars. However, the problems of the company increased when general Motors blocked the rescue attempt of the company by two Chinese automobile firms, arguing that such actions would hurt the company’s markets in the US (White, 2011, p.2). Most significant of the causes of the cash flow problems of the company is the time difference between when the company’s payments were received and the costs incurred. While the costs were incurred continuously due to staff salaries and supplies of materials from the suppliers, the time duration it took to produce the cars, sell, and receive payments was relatively longer. This meant cash flow problems, since revenues could not come in at the same time as the costs went out. Under investment is another cause of the company’s business failure. While the company was, still a part of GM (General Motors), the owners did not invest sufficiently in the company. As a result, the company has not been able to meet its other obligations such as developing production technologies of its own. This has served to create dependency of the company on other automobile companies for technology provision (Howard, 2011, p.21). This notwithstanding, the production portfolio of the company was too small. The company did not manage to address this problem in good time. With such low production, the company could

Research methods - Literature review Assignment Example | Topics and Well Written Essays - 500 words

Research methods - Literature review - Assignment Example The tone of the article also supports that he is addressing the literate class. In addition, the literature review presented is well referenced using footnotes, a factor that ascertains that it is scholarly. The author explores the balancing and bandwagoning, as the two options that states have during conflicts. Schweller seeks to highlight the factors that motivate states to settle for any of the two alternatives. His thesis is very evident that balancing and bandwagoning are not opposites, and a range of different factors motivates states adopting either of them. The goals of balancing and bandwagoning are different as well, with states opting for bandwagon to gain something, while the purpose of balancing is ensuring that values are protected (p. 75). From the literature review, it becomes evident that many scholars have not focused on exploring the issue of bandwagoning effectively. The author highlights that other authors who have tried to explore this topic previously have misconceived the concepts of bandwagoning. The literature review highlights that rewards are of central significance to states that opt for bandwagoning. It emerges that other reasons also prompt states to consider bandwagoning as the preferred option. The theory of the balance of interests is more realistic in explaining bandwagoning (p. 100). Schweller believes that the topic of bandwagoning has not been explored as it deserves. This is because the balancing theory that has often been used in explaining this concept seems insufficient. Moreover, the goals of bandwagoning have not been explained in details as required. He discerns the need for the development of new theories that can effectively explain the concept (p. 105). In his literature review, he focuses on filling this gap. He does this by reviewing the balancing theory, and explaining the reasons that prompt states to opt for bandwagoning. He

HISTORY OF MOTION PICTURES Research Paper Example | Topics and Well Written Essays - 1500 words

HISTORY OF MOTION PICTURES - Research Paper Example Their accomplishments, pioneering efforts and new techniques arguably led the way in the movement, thus making these two directors arguably the most influential filmmakers of this period. According Taylor (1964), the French New Wave movement started with Roger Vadim, a young man in his late 20s, was married to starlet Brigitte Bardot, and was allowed to direct a film starring Bardot, and this 1956 film, titled Et Dieu crea la femme became an enormous critical and commercial success (Taylor, 1964, p. 201). This made producers more willing to gamble on younger directors, and the New Wave movement was born in France. Taylor states that the influential figures in this movement include directors Jaques Rivette, best known for his â€Å"strange, elusive, haunting film Paris Nous Appartient (Taylor, 1964, p. 201); Jacques Demy, known for Lola a film which is known for its genuine feeling, wit and charm. Screenwriter Marcel Moussy is also mentioned by Taylor as being influential in the movement, as screenplays for Les Quatre Cents Coups, Tirez sur le pianist and St. Tropez Blues displayed â€Å"the sort of free-wheeling youthful grace and freshness so many more pretentious films have striven for and signally failed to achieve† (Taylor, 1964, p. 202). Documentarians Agnes Varda, who produced documentaries that were reflections on her own temperament and Jean Rouche, who displayed mise en scene and cinema verite techniques in his documentaries about African subjects, were also considered influential in the movement (Taylor, 1964, p. 202). Marcel Hanoun, who, as a television director and cinematographer, â€Å"carried Bresson asceticism to its logical conclusion with a subtlety and restrained power†, is yet another influential figure of this wave (Taylor, 1964, p. 202). Another cinematographer, Raoul Coutard, lent his expertise with colors and backgrounds to films by Trouffaut and others (Taylor, 1964, p.

Construction Engineering Assignment Example | Topics and Well Written Essays - 1750 words

Construction Engineering - Assignment Example When the constructed facility is offered proper management and maintenance, the facility may last 100 years or more; the facility is also capable of serving different functions within the specified time. The actual lifetime of a property is dependent on a number of factors, including the quality of design, the durability of the materials used for the construction, the quality of the facility and the technology used (Edwards, Bartlett and Dickie 2-7). Other factors determining the lifetime of the facility include the local climate and the location, extent of use and the damage caused by human errors and natural disasters. The components of a project’s life cycle include the initiation phase, which entails the determination of the timing and the scope of the given project. The second component is the planning phase, where the detailed planning of the project takes place, and the actions aimed at the completion of the plan are started. The third is the execution phase, where the action items are implemented, and physical deliverables are delivered. The fourth component is the close-out phase, which covers the wrap-up of the project. It entails summarizing the lessons and the successes of the project to the different stakeholders (Edwards, Bartlett & Dickie 2-7). Qn. 2. The problems facing the Canadian construction industry include global climate change. With the increasing focus on the energy consumed, and the carbon dioxide released by different building models. For this reason, industry players are obligated to work hard, towards the renovation or the replacement of the buildings that don’t offer a minimal environmental effect. For instance, achieving carbon neutrality, while at the same time ending up with a considerable return on investment has forced industry experts to promote the reduction of fossil-fuel consumption (Ontario Ministry of Infrastructure). For these different reasons, industry leaders are forced to renovate existing facilities an d to develop new building models. The second challenge is the aging infrastructure, where buildings and other infrastructure like roads need to be changed, redeveloped or renovated, depending on their economic and environmental impact. For example, in some economies, statistics show that traffic congestion costs the economy, more than $67.5 billion a year, through fuel wastage and lost productivity. Further, construction industry leaders faced the challenge of replacing substandard bridges and roads, which are mentioned as factors contributing to highway accidents (Ontario Ministry of Infrastructure). There is the challenge of a shrinking workforce, noting that Canadian statistics show that, as of 2016, there will not be enough people to replace the retiring workforce. This is a challenge, because the reduction in the workforce will reduce the capacity of the industry to deliver the developments, and the changes desired. There is the challenge of a declining productivity of construc tion firms. This is mainly caused by the competitiveness required from industry players, which is forcing some to exit the industry. As compared with the productivity of the non-farm productive areas over the years, which has grown by about 200 percent, the

Teen oriented dating reality shows are undermining the values of our Essay

Teen oriented dating reality shows are undermining the values of our youth - Essay Example Scholars and experts have engaged in thought-provoking debate on the impacts of the reality television programming on the society, with majority perceiving it have negative influence especially on the youth. With emphasis on teen-oriented dating reality shows, this paper seeks to differ with the assumption that these reality shows undermine the values of the youth in society (Bilandzic and Rossler 296). For the purpose of this paper, The Bachelor and The Bachelorette dating reality shows will be the primary example throughout the paper. Contrary to these assumptions, the paper reiterates that dating reality shows actually demonstrate a number of beneficial values to individuals, especially the youth. According to some portion of scholars, claiming that a television show has negative or positive influence over reality is to forgo the x factor. This has nothing to do with the show. The main contributing factor to such perception is what the viewer takes from an experience, similar to the interpretation of the Christian Bible. The presentations may largely vary, but the results will be the same: people will hear what their conscience wants to hear, and proceed to apply those experiences in their lives in ways that benefits them personally. However, this does not make the particular thing good or bad. If our judgment no everything based on their effects on people, then most of what we consider sacred and moral would be bad since religious fervor is the cause of many battles in the past. Just like people, the media can have both positive and negative impacts on the society at the same time. Indeed, the presentation may have some bias on one direction or the other, but the most import ant determinant is the individual doing the viewing (Reiss and Wiltz 364). It is thus important to look and evaluate the types of people watching a particular program before pointing fingers in any directions. In

Facilities And Rational Essay Example for Free

Facilities And Rational Essay For a multinational hotel chain, there is need to maintain quality standards for organization to live- up to their brand equity and customers expectations. However, as hotel proposed to be a 3- star hotel, we need to take care of the costs and need not go overboard in promising amenities and services. Moreover, as per recent report (1), occupancy in London hotels has come down form 80% to 75% with respect to other European cities in 2001 to 2002 period. East end of London is right place to open a new hotel as next four- five years going to have lots of business activities prior to 2012 Olympics. During Olympics spectators load going to create havoc on cities infrastructure and demand from visitors would result is substantial shortfall of rooms. As costing and other business case related evaluations are done separately, below is the detailing of key elements of hotel facilities, infrastructure and amenities for a three- star hotel for business clientele Features of rooms: In a 200- room hotel, there is need for gradation of quality of rooms to cater to spectrum of customer profile. Rooms need to be premier and ordinary quality, however, allocation in the categories to follow pyramid structure of the target segment. Plan for maximum number of ordinary room, with 80% (160 units) coverage, 15% (30 units) of executive suites and 5% (10 units) of presidential suites. Suites can be on higher floor which can give better view of the city/ upcoming stadium/ river. Hotel room is most critical interface of the hotel with the customer in building impression and to ensure ‘recall’ and ‘re- visit’. Below are the key aspects of the room amenities. †¢ Decent size (6 ft* 7ft) bed with access from both sides, ample number of cushions/ pillows (hypo allergic), reading lamp attached from behind wall. †¢ Study table made of good quality wood. Chair with arm rest and robust cushioned back support for prolonged working. Table to have lamp and stationery. A detailed road map of London and transportation network would be great help to travelers. †¢ Comfortable couch to stretch legs after days work, centre table to place office bags etc, soothing paintings on the wall, cupboard with ample hangers, shoe- shine etc. †¢ LCD Interactive TV/ Entertainment system with access to business channels, individually controlled AC, internet connectivity, business papers and magazines, phone facility, safe deposits box, tea/ coffee making unit and complimentary mini bar. †¢ Bathroom: 24 hour hot/ cold running water, fitted with overhead shower, bath tub, WC. Along with other toiletries, shaving kit for business traveler, dryer, magnifying mirror, bathrobes, in- room slippers, 24- hr laundry service. Fire alarm: Each room required to be equipped with fire alarm, which is moral responsibility of hotel owner, moreover, it is statutory requirement. Alarm need be quite sensitive to smoke, and alarm must be audible to authorities and residents to take up proper cover. ‘Water sprinkler’ is option worth trying depending on the budget. Sprinkler would help in containing fire before it grows. All room to have instructions at bedside outlining what to do in case of fire. Exit signs must be visible from all corners of the corridor. As proposed hotel is to cater to business clientele, there would be large gathering of delegates to conduct meetings and conferences. Location of such facilities is important. Conference rooms neither should be at basement and nor at the top floor. All exits, pathways should be unobstructed for emergency evacuations. Air conditioning: Central air cooling and heating is hygiene level need for a 3- star hotel. To take care of customers/ guests during extreme temperatures in summers and winter effective air conditioning is required. Each room would have louver/ air- vent to release hot/ cool air draft. From each room, air duct to be connected with the central air compressor. Air conditioning systems are the greatest guzzler of electrical energy in hotels. A detailed assessment of energy efficiency is required to optimize costs. It is always preferred for each room to have individual control panel to regulate the temperature. Health facilities: †¢ To unwind after hectic day of work, business travelers look forward to Spa/ Swimming Pool (covered, temperature controlled) / Gym with treadmill, weights and trainer support. †¢ Doctor must be available on call, 24/ 7. For emergency a reference book with important telephone number s and contact person names to be provided in each room. Utilities: †¢ 24 hr water supply, with purification plant, captive to the hotel. East- End being not very advanced in life standards, it would be important to give comfort to customers on hygiene issues like pure water, unpolluted air and cleanliness. †¢ Uninterrupted power supply at steady voltage with no fluctuations. Any volatility in current would affect laptop kinds of gadgets of customers. Hotel must be equipped with power back- up in form of generator in event of electricity failure. †¢ Currency exchange facility, with tie up with international bank. Single window facility to take care of financial needs of customer would reduce unwanted hassles for the customers, avoiding unnecessary trip to the city. †¢ Fleet of cars for airport pick up/ drop. Or tie with car rental for availability of cars during peak hours. Economics to be seen. Under London congestion charging scheme, use of car in the city is becoming expensive, so for group transfers, use of coach would be time saving and cost effective. †¢ Speed elevators with proper signage and space. Separate service elevator for staff and service. Restaurant: †¢ Restaurant to offer complimentary buffet breakfast. Continental breakfast is recommended for all days. A variety of spread (boiled vegetables to cakes) would help in charging the customer for the big day ahead. †¢ 24- hour coffee shop for executives reaching at odd hours from office/ airports. This facility must have laptop/ mobile charging electrical points for executive to carry out work along with the much needed coffee break. †¢ Multi-cuisine restaurant to take care of varying taste buds of plethora of businessman travelling in and out of London. †¢ Bar cum live music: To tap business and tourist traveler both, a bar with live music is important differentiator. Features characteristics of the building a) Facade: For 200- rooms, and assuming space to be constrained in east- end, hotel need to be 12- 15 storey structure, with parking in basement. Reception, business centre, conference halls and restaurants at first and second floor level. Most of the room must be front facing. Room windows/ balconies to be of uniform size, glass and light fixtures, to give consistent view of the hotel. Two- lane space in front of main gate smooth flow of cars. b) Branding: Signage of hotel brand/ name to be positioned for it to be visible from the approach roads. Hoarding on the roads emerging out of airport, with toll- free number would help in generating enquiries from prospective customers. c) Business centre: Fax facility, desktops with high speed internet, small meeting room (for 4- 6 person), small library with latest business books/ journals. d) Conference rooms: Equipped with good quality overhead projector, 50- 100 chairs, round tables, chord less mikes, quality speakers with proper acoustics and white board etc. These halls must be suited for seminars, conventions, conferences, training programs etc. Important element for better ROI (return on investment) from conference rooms is to have partition arrangement. In event of small group size (20- 40), same hall can be partitioned into two for couple of parallel small sessions. e) Shopping arcade: If local artifacts, business and ethic garments and books on exotic topics etc is provided within hotel, customers may have another reason to avoid congested city markets. Moreover, this bazaar/ series of shops can be another string of revenues for the hotel. f) Car parking: Parking space must be available for 80- 100 cars, with valet parking facility. PA (public announcement) system to facilitate quick access to cars and faster movement from the main porch. 2012 Olympics: For summer Olympics just four years away, economic activities would start building up from now (2008). There would be pick- up in lots of construction and infrastructure work for facilities for Olympic stadium, athletes’ complex and spectators. Various suppliers of machineries, services and equipments would visit often the city and the area. During Olympics spectators from around the world would result is substantial shortfall of hotel facilities. As East End going to see lots of business activities and media focus in next few years, it is most opportune time for hotel industry to capitalize on top line and bottom line growth. From Olympics perspective, this multinational hotel chain must toy with the idea of taking a quality hotel property on lease for 5 years. Logistics: It is important to have proper connectivity with key points of London city like Airport at Newham. As per Regional Planning Guidance3 (RPG3) hotels are encouraged to develop facilities in underdeveloped boroughs (1) to overcome traffic snarls and make stay of customer comfortable. A proper commuting network is required to be developed, using coaches and cars for the customers who would be staying in the hotel. Conclusion: A well equipped hotel by a well known brand in a demand- supply gap scenario is a favorable business proposition. To have first- mover advantage, and to gear up to tap the potential in a 3- star hotel with aforementioned facilities is a compelling business case to be taken forward by the organization. Reference: (1) PriceWaterhouseCooper’s 2002 report to Greater London Authority on ‘Demand and capacity for Hotels and Conference centre in London’

Competitive Analysis Of Porters Five Forces Model

Competitive Analysis Of Porters Five Forces Model 1. Competitive Analysis of Porters Five-Forces Model Porters Five Forces model is a widely used approach to determine the strength of the competitive forces that will influence a company. (Exhibit1) The competitive pressures that Robert Mondavi faces in the U.S. domestic wine industry based on Porters Five-Forces Model are described below: 1.1. Bargaining Power of Suppliers RMC has used backward integration strategy to increased control of grape suppliers. He has successfully convinced many of Krugs top grape suppliers to sign long term contract with RMC for approximately 75% of its purchases. (Professor Roberto, 2002) He also worked closely with each grower to improve grape quality and the contract has been structured where the compensation was tied to the grape quality crop yields. This will improve the stability of the price as most of the growers depend on RMC for sustenance, thus give them very little bargaining power over RMC. Mondavi also convinced Krugs top two suppliers to take financial stake in his new winery. (Silverman, Gilinsky, Guy Baack, 2001) Since now they are the stakeholders have long term contractual relationship with Mondavi, it has reduced the likelihood that suppliers will increase price. Furthermore, RMC has invested more than $50mil over the past 10 years to replant vineyards after the phylloxera epidemic. For long-term plan, Mondavi also acquired additional vineyards to increase its internal grape sourcing to 25% by 2005 so that his wineries wont rely heavily on independent growers. (Professor Roberto, 2002) As such, threat of supplier bargaining power is low for RMC as they attempt to control the suppliers operations right from production to distribution. 1.2. Bargaining Power of Customers Sales of wine in U.S. are mainly controlled by three-tier distribution system. RMC sells wines to their customers who are the wholesalers/distributors, who then provided wines to local retails businesses which accounted for 78% of total sales volume in U.S. Supermarkets alone have contributed 52% of retails wine sales. (Silverman, Gilinsky, Guy Baack, 2001) However major changes had taken place in wholesale and retail wine business. Number of alcoholic beverage distributors had decreased by 75% in early 1960s and substantial market share are now controlled by top 5 distributors. (Exhibit 2) As a result, large distributors are enjoying economies of scales and prefer to distribute only top selling wine brands since the product can be replenished quickly. Bargaining power of distributors had increased significantly since they have a lot of wine brands to choose from. Furthermore, five new world countries Australia, Canada, Chile, New Zealand and U.S. have signed trade agreement in 2001 to keep markets open and reduce trade barriers. (Castaldi, Cholette, Hussain, 2006) With the globalization of wine industry, a lot of international wine brands are eyeing for space on the store shelves of these few powerful supermarkets. As a result, RMC faced increasing competition as they relied heavily on top distributors retails chain for domestic sales, which accounted for two-third of its revenue. (Professor Roberto, 2002) As a result, bargaining power of customers is high for RMC 1.3. Potential Entry of New Competitors Consolidation is occurring among wineries worldwide through merges and acquisitions in wine industry. In 1970s, several food and beverage conglomerates, like Nestle and Coca-Cola have entered premium market by acquiring premium to ultra-premium wineries. In 1980s, global alcoholic beverage companies, like Canandaigua and The Wine Group have acquired wineries to complement their beer distilled spirits businesses. In 1990s, there were some 200 new wineries in the Napa Valley competed with RMC in premium market. (Silverman, Gilinsky, Guy Baack, 2001) A growing number of these wineries were nearly owned by multinational companies which have free-flow of cash and able to gain economic of scales in wine industry through merger or requisition strategy. Furthermore, they have substantial investment in working capital and funding to acquire new vineyards or even pay higher prices for grape supplies. Although RMCs skills expertise are difficult to imitate, but the knowledge and experience of these new competitors in alcoholic beverage industry with the support of their existing distribution assets will be an added advantage for them to compete in wine industry. As a result, the new competitors with huge capital have dwindled capital resources of RMC, which ended in public listing to obtain more capital to compete and take advantage of future opportunities (Silverman, Gilinsky, Guy Baack, 2001) As such, threat of new competitors is high for RMC especially when the big companies treat mergers and acquisitions as attractive ways to grow. 1.4. Rivalry among Competing Firms Rivalry among competing firms is often the strongest of the five competitive forces especially in U.S. wine industry, which was composed of approximately 1,500 wineries with the top 10 accounting for 70% of U.S. production. (Silverman, Gilinsky, Guy Baack, 2001) RMC has experienced intense rivalry from few dominant large volume producers like EJ Gallo Winery and Canandaigua Wine which have controlled 40-50% of market share (Exhibit 3). Furthermore, EJ Gallo also start to enter the premium wine segment aggressively to capitalize on changes in consumer demand toward premium wines. This will affect RMC which is primarily competing for premium wine market. Besides, large volume producer like EJ Gallo also gained economies of scale and have been viewed as sales powerhouse by many industry observers. They adopted strategy of substantial vertical integration by owning glass container manufacturer, bottle cork operation, lime quarry, a fleet of trucks and network of distribution centres throughout the country. (Professor Roberto, 2002) This enabled Gallo to enjoy a significant cost advantage. In this situation, rivalry is more likely. Furthermore, most of the rivalries have focused on channels promotions strategy to increase brand awareness and broaden its customer base in the premium market. They employed a direct sales force, organize wine competitions, wine tourism as well as wine testing and education activities at their vineyard to build the publics awareness. To sustain the competitiveness, RMC has gone far with the launched of its first radio television advertising campaign nationwide. As such, rivalry among competing firms is high for RMC in premium wine segment. 1.5. Potential Development of Substitute Products There are a lot of categories in alcoholic beverage industry such as beer and distilled spirits. When considering substitute for wine, many people will always think the wine substitute is beer. Actually all these are more of a compliment than substitute as each product has its own characteristic, can be differentiated and used to accompany different occasion. However the threat of substitute products is moderately high for RMC within the wine category. For example, an incident happened in 1999 where all the distributors began to substitute competing Chardonnay brand on retailers shelves after RMC experienced shortfall in supplying Woodbridge Chardonnay brand. (Silverman, Gilinsky, Guy Baack, 2001) Furthermore, there are a lot of wines with similar price, taste quality are readily available from local or multinational brands. The wide selection of wines has confused the customers during the buying process and always have trouble to remember which wines they bought and liked. (Castaldi, Cholette, Hussain, 2006) As a result, the brand loyalty of customers is low and switching to an alternative product is more likely during the purchase process. Although RMC has presence in all premium categories and hold a competitive advantage in economic of scales and price, but the threat of substitute products is still possible as most of the distributors only prefer to buy the wines which gained most awards and acclaim from wine enthusiasts. Finally based on Porters Five Forces, it can be concluded that only threat of suppliers are favorable to RMC. Due to the high competitive and continuous threats from new entrance such as alcoholic beverage companies, it is important for RMC to be more innovative in developing world-class wines in order to sustain the domestic economic profits. 2. Key Success Factors of the Wine Industry 2.1. World Renowned Growing Area U.S., a new world producing country in wine industry was composed of approximately 1,500 wineries. The most famous growing area is California, which are the top wine producer in U.S. and fourth leading wine producer in the world behind the countries like France, Italy and Spain. (Wine Institute.org, 2007) The uniqueness of California is the ideal climate, topography, and soil condition which enable RMC to produce premium wines that are able to compete with the premium European brands. Besides, California also attracted a lot of tourists throughout the year. Hence, it continuously provides a constant source of customers to RMC. 2.2. Modern Winemaking Facilities Technologies Wine industry is a capital intensive industry and requires great winemaking techniques facilities to produce high quality wines. Based on the study by Professor Roberto (2002), RMC operated six wineries in California and each of these wineries employed modern technology to insure the gentle handling of grape and the high quality of fermentation and aging processes. Besides, RMC also built a state-of-art winemaking facility and assembling a team of experts in the area of viticulture and winemaking. All these new techniques and development of experts have been an added advantage for RMC in the production of world-class premium wines. 2.3. Domestic Market Growth Potential U.S has a very strong domestic market for wine industry due to its status of fourth largest producer of wine and third largest consumer in 1999. (Exhibit 4 5) Based on the study by Castaldi, Cholette, Hussain (2006), the highest concentration of table wine consumers was aged between 35 to 55 and 31.4% of consumption contributed by the adults in families earning over $75,000 annually. Normally this group of people has a very high disposable income and willing to pay more for premium wine. As a result, RMC is able to leverage on this favorable demographic to enjoy both economies of scale in the growing premium market. Those adults who are not regular wine consumers consist of teetotalers and beer or spirit supporters. (Castaldi, Cholette and Hussain, 2006) There are a lot of potential to convert this group of beer purchasers to become wine consumers. It can be done via innovative marketing strategy, e.g. health benefits related to moderate wine consumption. In conclusion, many project that U.S. will become the worlds largest wine market by 2008 with the steady rise of per-capita consumption in recent years. (Exhibit 5) 2.4. Focus in building Portfolio of Premium Wine Segment RMCs strategy is to focus on the premium wine segment. With the introduction of Woodbridge brand wine in the popular premium super-premium categories, it has become the best seller wine and contributed more than half of the RMCs revenue in 1999. To further broaden its customer base, RMC has introduced few new brands via domestic diversifications and global partnerships to fill various price points in the premium wine segment. RMC also further divided the ultra-premium category into two categories, which has not been adopted by the industry to-date. (Silverman, Gilinsky, Guy Baack, 2001) This strategy enables RMC to consistently produce premium wines to reach different group of customers and further differentiates their products from competitors, which focus more on jug wines. As a result, RMC able to sustain the competitiveness in U.S. wine industry. 2.5. Globalization of Wine Industry In 2001, U.S. wine industry has gone into globalization with the signing of Mutual Acceptance Agreement (MAA) on Oenological (winemaking) Practices with four new world countries, Canada, Australia, Chile and New Zealand. The main purpose is to promote greater international wine commerce and eases trade barriers for U.S. wine. (Wine Institute.org, 2007) This enables RMC to sell their product outside the region with lower tariffs, logistic cost and trade barriers. As a result, RMC has increasingly look abroad to increase sales, earnings and take advantage of certain macro-economic factors such as exchange rates. It also gives an opportunity for RMC to showcase other wines to enhance its reputation in international markets. 3.1 Steps to ensure the Success of Strategy Implementation Robert Mondavi future business strategy is to form global join ventures as a way to develop world-class wine and transform RMC to become a truly global company that grow, produce and sell wines in all the best wine-growing regions in the world. (Silverman, Gilinsky, Guy Baack, 2001) To ensure the success of strategy implementation, RMC need to focus on below few areas: 3.1.1. Positive Cash Flow Successful strategy implementation always requires additional capital. Based on the RMC Financial Statement (FY1997-1999), although the revenue has increased from $300.80 millions to $370.60 millions, but the net profit margin has reduced significantly from 9.4% in FY1997 to 8.3% in FY1999 (Exhibit 6). Therefore, it is very important for the company to recover its financial position by further pay down its debt in order to generate more free cash flow. In addition, it will provide more financial resource for RMC to grow its portfolio by taking advantage of future opportunities. 3.1.2. Market Segmentation Product Positioning With the plan to venture globally, it is very important for RMC to determine the characteristic and needs of consumers as well as analyze consumer similarities and differences in every new market. As consumers are different in every country, RMC needs to produce different wines to meet different country preference. With market segmentation, it will enable RMC to position each of its wines appropriately to meet consumer needs and expectation. As a result, RMC will have better control on production, distribution and advertising for each of its wine. Finally, it will help RMC to improve operation efficiency and hence maximizing the profits. 3.1.3. Traditional Online Advertising Campaign To conquer the global market, it is extremely important for RMC to build its brand and broaden its customer base. Based on the study by Professor Roberto (2002), most of the premium wineries in U.S. do not spend much on consumer advertising. They tended to focus more on channel promotion. As such, it poses a large opportunity for RMC to strengthen its brand appearance in advertising medium. For example, RMC can focus on TV and radio advertising to build trust and emotional connection with consumers. RMC can also advertise in selected premium magazines to strengthen its premium market penetration. Furthermore, with the emerging of new online medium, it will also help RMC to reach those consumers who are difficult to reach via traditional media. In conclusion, advertising is an important tool for brand building. 3.1.4. Management Operations Control Strategy implementation will never success without the strong management and operations control. RMC needs to establish clear, reasonable, measurable and achievable annual objectives which are well communicated throughout an organization. With clear annual objectives, all the employees will have the same understanding and moving towards the same direction in implementing the strategy. It will also help in allocating resources more efficiently according to annual objectives and provide relevant training for each employee to further enhance their skills. Besides, performance-linked rewards must be well placed to motivate and improve the productivity of all employees. Lastly, adequate and timely evaluation is needed to ensure the performance conform to the strategy. 3.2. Potential Problems during the Strategy Implementation 3.2.1 Conflict between Employees Conflict might occur between two or more parties in RMC. Normally misunderstanding disagreement occur during the implementation process as each party has their own commitments and expectations to achieve. Conflict is unavoidable for all organizations especially for RMC which has a large workforce to manage. For example, in 1999 Michael Mondavi was caught between the 2 camps due to an argument for RMCs future strategy. (Silverman, Gilinsky, Guy Baack, 2001) As such, conflict need to be solved before negative consequences affect the organizational performance and strategy implementation. 3.2.2. Resistance to Change Resistance to change is another potential problem that RMC might face during the strategy implementation. People fear to change because any changes in structure and strategies will affect or disrupt the current working environment. However, continuously adapt to changes is necessary for RMC to compete in the fast growing and increasingly competitive wine industry. Normally those organization best adapt to the changes will gain significant competitive advantage and strategy implementation can be relatively easy. 3.2.3 Challenge of Financial Management Monetary Systems RMC might face a challenge to maintain its financial stability over the next few years as strong financial budgets capital are required to sustain the business worldwide. Furthermore, RMC will also deal with two or more exchange rates which can complicate its global operation. The global profitability will also affected by the direct impact from dollar when the economy slowdown.